I have been reading about Subsea resources, and I will be keeping an eye on the stock, as their first salvage operation is imminent, and it will be interesting to see what level of sucess they can achieve, measured against their expectations.



SubSea Resources has been formed to salvage cargoes from cargo ships that have been lost in deep water. Only a handful of wrecks have been salvaged in water depths exceeding 1000 metres, whereas hundreds have been worked on in depths down to 300 metres. The barrier to deeper work has been a lack of technology, which is now available mainly due to developments in the offshore oil and gas industry.

Sonar scan of wreck

SubSea Resources has identified at least 70 commercial salvage targets and has identified twenty major target vessels containing cargoes with a gross value of over $450 million (based on recent LME metal prices and contemporary lading records). In the first phase of the companys business plan it aims to raise the cargoes from six of these vessels over the next three years.


In addition, it is anticipated that certain historic cargoes may be integrated with the commercial salvage operations. Some of the historic targets have potential values of many millions of dollars each, bringing the combined value of identified historic and commercial targets to well over $1 billion.




Initial Salvage Targets

SubSea Resources has an initial programme to salvage the cargos of six commercial wrecks in the period to 31 March 2008. The gross value of these six wrecks is estimated at US$180 million.

The wrecks allow for a mix of weather conditions - allowing for both northern summer and winter working conditions. All wrecks are in international waters and all of the cargoes will be recovered through contracts with the legal owners. The water depths range from below 1500 meters to 5000+ meters.




Corporate website : http://www.subsearesources.com/index.php

Soult, I think you might be needing my brown paper bag pretty soon if you don't pause for breath!!!
"The boy stood on the burning deck whence all but he had fled". I can think of others, but I am sure you have got the messsage by now. :o)

LOL - thanks Harry!

I will retire to the lifeboat and view the situation from a safe distance. :o)

I suspect it will be close to 10p. Management has taken its eye off the ball with the (hoped-leaseback) of the ship which faltered = gross carelessness - even with a company used to explaining away Events outside its control.

The business of Risk Management...... is NOT being good at explaining after the event....it is in having alternatives, so that each Risk is minimised - to the extent that if ( out of five ), they ALL OCCUR the overal strength of the business is not severely affected..........Not Easy....but then that why these Execs are so Very Well Paid for looking at Charts.......

. . . . . . . .. . . . . . .. . . . . . . . . . . . . .Expect some dilution with this new money -

I haven't followed SUB with my own money - but why haven;t they Factored the cargos? ie sold them on at a discount, taking the cash to pay for the recovery?
-Has this been suggested?
((It reduces profit, but it (should) eliminate risks:- in getting the metal, identifying its grade and fluctuations in Metal prices... A small bonus might be due to SUB if they raise the Metal within a tight time-scale to encourage good practice at sea, etc.))

soul* ..... please tell me you were not suckered into buying into this leaking and now foundering hulk.

It is sinking like the Titanic, not looking salvageable.

on the other hand, memory tells me that the Titanic or at least its artefacts were!

Cynic, HL, you exaggerate. I believe the point is that they have now proved they can recover the goods from wrecks in deeper water than the Titanic.

Another thought has occurred to me regarding the potential dilution: if they really do generate the kind of profits they are expecting, then there may well be a share buyback once they have some cash in the bank. Reverse dilution (= concentration??) !! Makes sense to me.

I may be a sucker (the jury has retired and has been deliberating its verdict for many long years now), however I did see a programme on German telly a few months back that followed a crew that did exactly what SUB is doing: recovering silver coin and bar using a mechanical grab, ROV and sonar and they were very successful. Admittedly they were in shallower waters than SUB but the principles were identical.

The only major snag that did occur was that the grab bucket suffered metal fatigue and sheared off from its attachment while at depth. By that stage, however, most of the cargo had been successfully recovered and the grab was bringing up more sea-bed mud than anything else. So the crew shrugged its shoulders, toasted a job well done and sailed back to land to get busy with doling out the booty. Which amounted to around 15 million of either , $ or , I can't remember which now.

Having seen it being done for real, I guess I'm slightly more optimistic.

However, I do know better than to catch a falling (sinking!) knife, so will observe and be patient.

Hangon: "gross carelessness"? If someone lets you down, they let you down.

getting gold bars from the bottom of a swimming pool is easy.
i think you will find it is the excessive depths that are the major problem.
AVOID like the plague but enjoy watching

getting gold bars from the bottom of a swimming pool is easy

The heck it is!

I had trouble with a brick when I got my Bronze Medallion for life saving.

I really am not too good a swimmer, but luckily my "casualty" was and with his help when I was towing him, we whizzed through the water at a fair rate of knots and the examiner did not notice, even though I was making quite a bow wave with my head nearly underwater.

Those were the days.

lucky he was not 10,000 feet down then!

SWW,

LOL!

Andy, have you had a look at the warrants (SUBW)?

FYI: SUBW Bid: 5p Offer: 6.5p Change 0
Exerciseable at 40p until 04 Nov 2009

LOOK AT THEM BUT DON'T BUY!

glug glug glug .,..... dive dive dive

I have decided to buy........

...........something else.

sensible sailor ... lol! ..... what if i may ask?

Wel..........GTL but only a few.